Government Working to Bring Down Logistics Cost

The government aims to achieve a substantial reduction in national logistics costs, aiming for it to be 8%-9% of gross domestic product (GDP) by 2045, aligning with the Golden Indonesia vision.

Hendra Wibawa

15 Sep 2023 - 19.46
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Government Working to Bring Down Logistics Cost

Container loading and unloading activities at Tanjung Priok port, Jakarta. Photo/Bisnis-Eusebio Chrysnamurti

Bisnis, JAKARTA — The government aims to achieve a substantial reduction in national logistics costs, aiming for it to be 8%-9% of gross domestic product (GDP) by 2045, aligning with the Golden Indonesia vision.

Minister of National Development Planning and Head of the National Development Planning Agency (Bappenas) Suharso Manoarfa stated that several measures have been devised to achieve this goal, including the strengthening of the national logistics system.

The target for 2045 is to reduce logistics costs to 9% of the gross domestic product (GDP). In 2022, government calculations estimate that national logistics costs will be 14.1% of GDP, excluding export-related logistics costs, which account for 8.89% of GDP.

He noted that there is no universal definition of logistics costs worldwide. However, he explained that the most significant components contributing to logistics costs include transportation, inventory and warehousing, as well as logistics administration.

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